Ajanta Pharma Q4 results: Net Profit jumps 66%; Declares Rs 285 Cr Buyback Shares At 24% Premium

Mumbai Based, Ajanta Pharma on Thursday reported a consolidated net profit of Rs 202.72 crore for the January-March quarter, marking a significant surge of 66% compared to the same period last year when it stood at Rs 122.25 crore.

The robust performance was underpinned by a substantial increase in revenue, which stood at Rs 1,054.08 crore, reflecting a notable uptick of 20% from Rs 881.84 crore recorded in the corresponding quarter of the previous fiscal year.

Additionally, Ajanta Pharma's earnings before interest, taxes, depreciation, and amortisation (EBITDA) witnessed commendable growth, reaching Rs 278.4 crore, up by 26.4% from Rs 16.9 crore in the year-ago period.

The Board of Ajanta Pharma has approved a buyback of up to 10,28,881 fully paid-up equity shares at a price of Rs 2,770 per share, totalling a consideration not exceeding Rs 285 crore. This buyback, representing 0.82% of the total number of equity shares of the company, is aimed at utilising the company's strong financial position to reward its shareholders.

This marks the fourth buyback initiative by Ajanta Pharma in as many years, showcasing the company's commitment to enhancing shareholder returns. The previous buybacks were executed in November 2020 and January 2022. Last year, the company successfully carried out a Rs 315 crore share buyback at Rs 1,425 per share through the tender offer route, repurchasing 22.1 lakh equity shares.

Established in 1973, Ajanta Pharma specialises in branded generics across various therapeutic segments, including cardiology, ophthalmology, dermatology, gastroenterology, pain management, anti-malarial, antihistamines, and respiratory. The company's diversified portfolio and focus on innovation have enabled it to maintain a strong market presence and drive sustainable growth over the years.

Commenting on the financial performance and the buyback decision, Ajanta Pharma stated, "Given our strong financial position, the board of directors has approved the distribution of Rs 351 crore to shareholders in the form of a buyback, including tax. This reaffirms our commitment to delivering value to our shareholders and underscores our confidence in the company's future prospects."

The pharmaceutical industry is witnessing rapid evolution and Ajanta Pharma remains poised to capitalise on emerging opportunities, leveraging its expertise, robust R&D capabilities, and extensive distribution network to drive sustainable growth and create long-term value for stakeholders.